How Much Money Do Americans Need To Be Comfortable?

The average American says they need to earn $233,000 a year to be financially comfortable. But in 2021, American workers on average made only $75,203 annually. With well over half of Americans living paycheck to paycheck, many are struggling to meet some of their modest financial goals. 72% of Americans said they currently weren’t financial secure, and more than a quarter of Americans said they’ll likely never be. So how did it become so difficult to be financially secure in America and what can you do about it?

Chapters:
00:00 — Introduction
01:18 — Affordability
05:30 — Credit is expensive
09:06 — Solving financial security

Produced & Edited by: Juhohn Lee
Animation: Christina Locopo
Supervising Producer: Lindsey Jacobson
Additional Sources: Bureau of Labor Statistics, OECD, Fidelity, Redfin

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How Much Money Do Americans Need To Be Comfortable?

[kamilareeder]

If rent prices were low enough for one to only pay 30% of income on housing, we'd all be doing much better

[kortyEdna]

Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?

[baronvonjo]

Yesterday I heard a guy say people are expecting food prices to go back down. Food will never go back down because the corporations have no reason to lower the prices. I started thinking about it and believe him

[ChristopherAbelman]

I admire your dedication to educate your audience. We all aim for financial stability and a better life. Achieving this is possible through wise investments, frugal living, and careful budgeting. I'm grateful that I learned the importance of working hard for financial freedom at a young age.

[guarigonzalez]

I love how they are switching between average and medium income to hide the fact that most Americans are actually making around $50, 000 (Before taxes) rather than around $75, 000 (Before taxes)

[pattheegreat]

They bring out these kind of videos to make us realize where we belong. Not too long ago when people started quitting the job market, it was a wake up call to all these people what we are able to do. They have created this environment to squeeze out the last penny from our savings and to show us our position in the society - as their slaves!

[Bridget-lp]

What sets top investors apart from the rest? I've got $385K in equity from a home sale and I'm unsure whether to put it into stocks or wait for a more favorable market condition.

[rannyorton]

The average person has never been so poor. Millions of families are struggling financially as living expenses hit the highest levels in more than four decades. Over 60% of our country lives paycheck to paycheck and about 40% earns poverty wages. Even after working all their lives, more than a quarter of older people have no savings and many believe they will never be able to retire in dignity, while around 55% of elderly people try to survive on an income of less than 25, 000 a year.

[Aubue]

Rising costs, insufficient savings, and economic pressures are taking a toll on people's sense of security.
It's time for a serious conversation about financial well-being and finding solutions that work for everyone, not just a fortunate few.

[cloudyblaze]

I recently started thinking seriously about how to think about money in a way that grows it both for me and my future generation. I started with 400k stock portfolio but it's hard for me to build confidence. I want to invest another 200k over a three-month span, but I want to be strategic about doing it so I can grow more and not stay stagnant. Any suggestions?

[lukefisherDD]

I recently sold a house in Portland, and I'm considering investing the proceeds in stocks. I know it's a wonderful time to buy, but is this the right moment? When will I fully recover? I'm honestly just perplexed at this point as to how other folks in the same market are making over $450, 000 in gains in a matter of months.

[danielguide]

I'm in my 50s and I'm more interested in investments that could set me up for retirement, I mean I've heard of people that netted hundreds of thousands during these crash, I listened to someone on a podcast who earned over $650K in less than a year, what's the strategy behind such returns?

[TheTferrer]

I live from paycheck to credit card to paycheck and so on. I do not have any debts, all vehicles are paid off, I do not carry balances beyond 14 days, and I do not buy what is not needed. Just spend on basics like food, water, electricity, and rent. I live a humble and simple life - still, I cannot make it financially.

[dtr]

I lost my job of 30 years and it took 18 Months to find another job. The thing that saved our family was having a large emergency fund. We didn't miss a bill payment or go into debt. We actually kept our same lifestyle of eating out, traveling a little and etc. My suggestion is, save as much as you can when times are good and don't touch it, because when times go bad you will be able to continue on without worrying yourself sick or going into deep debt.

[JWats-uxqk]

It is absolutely insane that rent is more expensive than a mortgage in most places. Rent, in practice, is supposed to be a FRACTION of the cost of a mortgage so that you are able to save up to take out a loan to buy a house. This is absolutely insane.

[FrankPatrick-nozo]

My main worry, given the current rate of inflation, my focusis how to increase my $300k reserve, which has been sitting stagnant for a very long time with little to no gains. I understand the long-term strategy, but since my savings are being eaten up by inflation and my portfolio is losing value every day, I need to find a solution quickly.

[LiquidChamploo]

I’m 28 years old living in Orlando FL.
There was a time when I thought making 60k a year would make me comfortable.
Jokes on me, even as a single man I can’t see myself retiring with comfort at this pace.
I’ve cut down on so much to contribute to savings, praying that when I buy my freedom I’m still in decent health to enjoy the rest of my life.

My financial grammar isn’t up there.. (IT Guy) but sometimes I feel like I’m just working towards my own funeral, which is another expense.

[davidsantana]

This topic needs to be addressed more often and more honestly, because hearing "just save money" or "hustle harder" doesn't really solve the problem, it just gets on my nerves. and another symptom of this problem there're sharks who take advantage of people who are looking for that extra bit of income with MLM's or working gigs

[EuneataWalker]

I love how this video goes from the problem being societal to “we need to own our financial responsibility and set goals” 🤪

[BenTodd-flnv]

I was part of the recent layoffs at Tesla and this bites hard. I am grateful that I kept some savings about; $600k and I am looking for ways to invest this into the stock market to generate good dividends to supplement for my monthly expenses.